Dubai Mainland Setup
Business Setup in Dubai Mainland
A company licensed by the Department of Economic Development (DED) within the relevant Emirate of the United Arab Emirates is classified under the mainland category. This article explains the procedure and benefits of registering a business in UAE mainland. Availing the expert services of premier Businesses Set Up Consultants, such as FAR Consulting Middle East, helps to ensure a seamless and efficient business setup process on the Dubai mainland.
Advantages of Mainland company formation in Dubai
The benefits of establishing a mainland business in Dubai include but are not limited to, the following:
- 100% Foreign Ownership: Recent law modifications enable numerous commercial operations to obtain 100% foreign ownership status as one main advantage.
- Market Access: The Dubai Mainland business sector maintains freedom regarding market penetration into both its home domestic sector and foreign overseas markets, thus becoming essential for enterprise expansion.
- No Currency limits: Without currency restrictions, companies gain easier control over their financial operations.
- Strategic placement: Dubai provides an especially attractive platform for international business expansion because of its prime geographic position between Eastern and Western regions.
Why Choose Dubai Mainland for Business Setup
There are so many reasons and benefits of business setup in the UAE mainland.
- 100% Foreign Ownership: The major advantages are that under the new amendments introduced in UAE law, many business activities allow 100% foreign ownership.
- Access to Markets: There is no restriction on businesses in Dubai Mainland to get access to the local and international markets, which always holds a big importance factor for the business growth of the organization.
- No Currency Restrictions: No restrictions over currency facilitate easier ways of handling the company’s finances.
- Strategic Location: Due to the strategic location between the East and the West, Dubai has become a very attractive base for companies willing to expand globally.
- Low Capital Requirements: The establishment of a mainland company in Dubai does not require substantial paid-up capital when it comes to startups or small and medium-sized enterprises.
Documents Needed for Business Set Up in Dubai Mainland
The following documents are required:
- A copy of the lease agreement that has been properly attested by Dubai’s Real Estate Regulatory Agency (RERA)
- Memorandum of association duly attested (for all sorts of corporations)
- approvals from other relevant government agencies, if necessary
- Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals), the UAE involving a local service agent.
- All of the previously provided documentation as well as the initial approval receipt
Advantages of a Dubai Mainland License
Having a Dubai mainland license will bring enormous benefits. It can operate freely across the UAE, involve in government contracts, and expand without restriction. This is a very suitable license for companies looking to have a strong local presence and pursue wider market opportunities.
Be it trading, consultancy, or manufacturing, a mainland license offers the greatest flexibility and scalability in operation.
Cost of Mainland Company Formation
The cost of mainland company formation in Dubai will depend on factors such as the type of license, office rent, and governmental fees. Common costs include a trade name reservation fee, initial approval fee, and fees for processing visas.
FAR Consulting Middle East. present a proper breakdown of each cost, enabling clients to understand and plan their finances accordingly.
Steps for Business Setup in Dubai Mainland
Setting up a company in the Dubai mainland requires a few crucial stages. These steps must be followed carefully while adhering to the UAE’s local regulations.
1.Choose the Business Activity and Business License:
To start, it is crucial to decide upon business activity. Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional, etc. There are more than 2,000 business activities to choose from in the UAE.
The main categories of business licenses that are issued in the UAE include:
- Occupational
- Tourism
- Industrial
- Commercial
- Agricultural
- Professional.
It is important to note that an investment/business can have more than one business activity.
2.Choose the legal form of your business:
The second step includes selecting the legal structure for your business. It is very important to know that the legal form of the business must match with the chosen business activity. In Dubai mainland, the most common forms are:
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole establishment
- Holding companies.
Each legal form has specific advantages, depending on the nature of your business.
3. Register the trade name:
The trade name distinguishes one business from another; it also reflects the nature and the form of the business. A request for a trade name may be submitted by an investor through the economic department in each emirate, either on its website or on its mobile application.
4. Applying for an initial approval :
An initial approval is a no-objection from the UAE Government regarding setting up the business in the country. It also permits the investor to go ahead with the other formalities required for setting up a business. It does not, however, grant the authority to run or practice the business activity.
It is imperative for foreign investors to seek the approval of the General Directorate of Residency and Foreigners’ Affairs before obtaining the initial approval.
Some activities need additional approval from government entities concerned with the particular business before submitting for initial approval. These activities include those dealing with legal affairs, security affairs, and financial securities and commodities.
5. Drafting a Memorandum of Association and local service agent agreement:
Depending on the type of legal form for which the business will operate under, a signed and completely filled Memorandum of association or a local service agent agreement of the business will be required. This shall be applicable to business following any of the following business legal forms:
- Limited partnership
- Limited liability company – LLC
- Public Joint Stock Company – PJSC
- Private Joint Stock Company -PrJSC.
Important points to consider:
- MoA and Agreement is prepared and attested from UAE-based law firms, courts and notary public.
- Businesses wholly owned by non-GCC residents require a local service agent from the UAE. The appointment of the local service agent will be under an agreement attested by the notary public or the court.
6. Choose a location for the business:
All businesses must have a physical address to run the business in the UAE. The business premises, and location, must meet the regulations as set out by each emirate’s Department of Economic Development, along with those in respect to land planning in the municipalities.
It is necessary to provide a tenancy agreement for offices and warehouses rentals. Some emirates require tenancy agreements to be attested. For Dubai, it is required that the Agreement should be registered with Ejari.
7. Obtain additional Government approvals:
The establishment of some activities requires further permissions from the relevant government entities of the activity. The list below is sorted by ministry for the following activities:
- Ministry of Interior
- Ministry of Justice
- Local municipal department
- Telecommunications and Digital Government Regulatory Authority (TDRA)
- Executive Council
- Ministry of Economy
- Local health departments
- Supreme Petroleum Council
8.Obtain Dubai mainland license :
After successfully completing the above steps, an investor can collect the Business license from the Department of Economic Development (DED) in Dubai or through their websites.
How FAR Consulting Middle East Can Help
Business setup in Dubai Mainland could be a very lengthy process without professional assistance. FAR Consulting Middle East facilitates the whole process with broad assistance in the journey from the beginning itself. In addition to all this, we also offer other related services which include VAT registration services, tax compliances, and PRO services, among others.
Why Choose FAR Consulting Middle East
FAR Consulting Middle East is one of the renowned business consultancies with rich experience and a client-oriented approach. Being government-approved agents, we work in close contact with DED and other authorities to provide a smooth and quick company setup in Dubai mainland.
Our transparent policy of pricing and high-quality service make us a preferred choice for all the entrepreneurs and businesses that desire to establish themselves in the UAE mainland.
Start Your Business in Dubai Mainland Today
Dubai’s mainland presents endless possibilities for growth and success. It can guide you through establishing a successful business in one of the most dynamic markets in the world.
Call FAR Consulting Middle East now and start your journey of business setup in Dubai mainland with ease. Our highly dedicated team guarantees to take along the process to make your job easier and more accomplished.